Payroll Rebate Approved

Nova Scotia Business Inc. (NSBI) has approved a business development incentive, in the form of a payroll rebate, for ResMed Halifax Inc.

ResMed, a global health care technology company, has the potential to create up to a maximum of 40 new jobs. Based on the maximum growth forecast of the five-year payroll rebate agreement, NSBI estimates ResMed would spend $11.25 million in salaries.

The new employees would pay provincial, personal income taxes of about $1.3 million. As a result, ResMed would earn up to $787,500 through the payroll rebate over five years. ResMed is eligible for a smaller rebate if it creates fewer than the 40 new jobs.

Quick facts:

• payroll rebates are designed in a way that the tax revenue generated for the province by the new jobs in Nova Scotia is always more than the amount spent on the rebate
• payroll rebates are only disbursed after a business has generated actual payroll in Nova Scotia economy
• for every dollar a company spends on the new jobs, it receives between five and ten cents back
• when a company submits an annual rebate claim, it must send NSBI audited information that confirms the number of jobs it created that year
• payroll rebates are disbursed through the Strategic Investment Funds.

Information on NSBI business development incentive transactions can be found at http://www.novascotiabusiness.com/fundingdisclosures.